Alaska Permanent Fund Corp. board all but rejects plan for riskier investment target

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Board members had been considering a four-year plan that included an aggressive strategy to reach $100 billion by 2028.

By James Brooks, Alaska BeaconThe board of trustees for the Alaska Permanent Fund Corp. meets Monday, Oct. 30, 2023, in Juneau.

During a work session meeting on Monday, trustees did everything but explicitly reject the idea after advisers said it was particularly risky. “If we chose to target a $100 billion value by a certain date, that might involve the board adopting a different ,” said Marcus Frampton, the fund’s chief investment officer.

Under one scenario, the fund would have borrowed as much as $18 billion — a quarter of the fund’s present value. Despite the drawbacks, a lower target comes with less risk and is in line with what other funds are doing, the board’s advisers said. Harris said the general expectation is for lower financial returns, which is why the board is hearing a 4% recommendation.

Board members said they are interested in exempting high-level hiring processes — for the corporation’s executive director and chief investment officer — from the state’s open meetings act.

 

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